full repayment advice needed please

snowmaid

luckyfool wrote: »

Is it "expensive" in the sense that the rate is high? The payments are too high? Or do you just mean that your lender is charging a fifty or hundred quid fee for switching?

Who is your lender?
What rate does your deal revert to in February? Is it an SVR or tracker above base rate?

You do not need to move lender, or switch to repayment even. You could get the same impact as switching to repayment by overpaying your mortgage on a monthly basis, avoiding any admin fee charged by the lender.

Now this is good advice.

SuperMarianPahars

hoddie wrote: »

I have 21k interest only mortgage , the deal finishes in feb 2009, i need to change to a full repayment mortgage which i suppose would have to be payed off within 4 years as im 61 now.Any advice please.

What rate is your deal at the moment? If you got it 18 months or so ago you may find the variable rate is better than any new fixed deal you can get. If you mean the transfer to repayment is pricey because it pushes your payments up then this is not really an element you can shop around to reduce, as repayment is what it is. If its pricey because they want to charge you to swop then there are plenty of other lenders who wont (sadly no one is offering a good deal at the moment)

Not being cheeky, but have you tried Saga? - do they offer mortgages that extend onto beyond 65?
Do you have a younger co-mortgagee who could have a new mortgage solely in their name to buy you a little more time?

MrMicawber_2

Double check whether you do really need to repay your mortgage by the time you are 65. Whether you convert to repayment or stick with interest only and make big capital overpayments, 21k in 4 years is bound to be a lot.

If you can extend to 70 you will reduce the monthly burden.

If you can afford to pay it off by 65 my inclination would be to do so. If you can't but can extend to 70 and can then afford it I would do this.

What savings, investments, pension do / will you have?

WillowCat

If you're going to pay off a £21,000 mortgage in 4 years the actual interest rate is not particularly relevant.

You need to minimise the admin fees if at all possible - preferably to zero which is probably what staying with you current lender would be?

For example, back of an envelope calc, payments at a rate of:

3% = £464.82 per month
5% = £483.62 per month
7% = £502.87 per month

As you can see most of what you're paying is capital.